The CRE loans hitting the auction block in Texas this month dipped slightly despite warnings of an imminent wave of multifamily distress.
This month will see $575 million in loans at the auction block across the Texas Triangle, down from $710 million in September and $670 million in August, according to Roddy’s Foreclosure Listing Service.
Harris County, home to Houston, was once again the hardest hit, with 11 properties totaling nearly $270 million in debt facing foreclosure.
Here are the biggest loans up for auction this month. It’s possible that some of these borrowers and lenders will reach agreements to avoid auction.
Houston
The largest CRE loan debuting on the auction block in Houston this month is a $42 million mortgage tied to the 265-unit Adenine Apartments. Unlike most of the multifamily properties facing foreclosure in Harris County, this one is relatively new, built in 2016. Madera Residential, which is based in Lubbock, bought the apartment complex, at 1755 Wyndale Street, in 2023. The debt is a collateralized loan structured by Prime Finance Partners. It works out to $158,490 per unit.
San Antonio
Troubled investor Alan Stalcup and his firm GVA are facing foreclosure on Barcelo Apartments, a 288-unit apartment complex at 3501 Pin Oak Drive in San Antonio. CBRE Multifamily provided the $30.5 million mortgage. The debt on the property, built in 1972, works out to $106,000 per unit.
Dallas
Arbor Realty is foreclosing on Parea Oak Lawn, at 4503 Lake Avenue. Lakewood, New Jersey-based Sun Equity Partners is the owner. The $25.5 million mortgage on the 131-unit property built in 1970 works out to $194,656 per unit.
Fort Worth
The loan tied to Arioso Apartments & Townhomes is supposed to hit the auction block this month. A Rialto Real Estate fund provided the $56 million mortgage for the 288-unit property at 3030 Claremont Drive in Grand Prairie. Ed Monce’s IMH Companies bought the property in 2022. It was built in 2007, and the debt works out to $194,000 per unit.
Repeat offenders
Of the 11 foreclosures in Houston’s Harris County, six properties are regulars. They’ve received multiple foreclosure notices but haven’t been sold yet. The list includes multiple properties owned by Rao Polavarapu’s Falls Apartment Group, which had a loan head to special servicing in August.
- Falls of Braeburn, a 191-unit complex at 9707 Braeburn Glen ($64.5 million);
- The Selena Apartments, a 446-unit complex at 250 Uvalde Road ($37.9 million).
- Falls of Las Villas, a 466-unit complex at 407 Richey Street, and Falls of Alta Vista, a 514-unit complex at 621 Richey Street ($33.5 million);
- Falls of Westpark, a 356-unit complex at 6130 Southwest ($29 million); and
- The Sophia Apartments, a 240-unit complex at 11500 Green Plaza ($17.9 million).
Two properties in Bexar County are headed to the block a second time:
- One Technology Center, a 196,000-square-foot office building, at 7411 John Smith Avenue ($57.75 million); and
- Aviator at Brooks, a 280-unit apartment complex at 8010 Aeromedical Road ($33.9 million).
Travis County will see one repeat customer at the auction block this month:
- Galleria Oaks Building 2, an 18,000-square-foot retail strip at 13376 North U.S. Highway 183 ($16 million).
As will Dallas County:
- Three Forest Drive, a 367,000-square-foot office building, at 12221 Merit Street ($57.75 million).
Read more
‘It’s trouble’ Texas multifamily experts anticipate distress wave
$700M in Texas CRE debt pegged for foreclosure auction this month
Texas CRE loans facing foreclosure balloon to $670 million in August
